Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v2.4.0.8
Business Segments and Customer Information
 9 Months Ended
Sep. 30, 2013
Business Segments and Customer Information [Abstract]  
Business Segments and Customer Information
(6) Business Segments and Customer Information

Business Segments

Management of our business operations is conducted under four reportable operating segments:

Supply Chain Management Group – Our Supply Chain Management Group supplies vehicle parts primarily through a Managed Inventory Program ("MIP") to USPS and direct sales to other clients.

Federal Group - Our Federal Group provides legacy equipment sustainment, engineering, technical, management, integrated logistics support and information technology services to DoD and other government agencies.

International Group - Our International Group provides engineering, industrial, logistics and foreign military sales services to the U.S. military and other government agencies.

IT, Energy and Management Consulting Group – Our IT, Energy and Management Consulting Group provides technical and consulting services primarily to various civilian government agencies.

These segments operate under separate management teams and financial information is produced for each segment. The entities within each of the Federal Group, International Group, and IT, Energy and Management Consulting Group reportable segments meet the aggregation of operating segments criteria as defined by the accounting standard for segment reporting. We evaluate segment performance based on consolidated revenues and profits or losses from operations before income taxes. Net sales of our business segments exclude intersegment sales as these activities are eliminated in consolidation.

As of the second quarter of 2013, the sale of vehicle parts to DoD is included in our Federal Group operating results instead of our Supply Chain Management Group. Accordingly, we have reclassified our prior period operating results to conform to the current year presentation.

Our segment information for the three- and nine-months ended September 30, 2013 and 2012 is as follows (in thousands):

 
 
Three months
 
 
Nine months
 
 
 
2013
 
 
2012
 
 
2013
 
 
2012
 
Revenues:
 
 
 
 
 
 
 
 
Supply Chain Management Group
 
$
36,597
 
 
$
32,074
 
 
$
106,319
 
 
$
100,607
 
Federal Group
 
 
20,111
 
 
 
38,099
 
 
 
79,371
 
 
 
107,422
 
International Group
 
 
35,428
 
 
 
39,778
 
 
 
107,057
 
 
 
127,823
 
IT, Energy and Management Consulting Group
 
 
18,933
 
 
 
24,286
 
 
 
56,541
 
 
 
74,043
 
Total revenues
 
$
111,069
 
 
$
134,237
 
 
$
349,288
 
 
$
409,895
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Supply Chain Management Group
 
$
7,306
 
 
$
5,990
 
 
$
20,311
 
 
$
17,751
 
Federal Group
 
 
(2,303
)
 
 
3,228
 
 
 
1,462
 
 
 
7,897
 
International Group
 
 
2,285
 
 
 
1,317
 
 
 
5,451
 
 
 
4,152
 
IT, Energy and Management Consulting Group
 
 
2,475
 
 
 
4,405
 
 
 
6,206
 
 
 
10,353
 
Corporate/unallocated expenses
 
 
(303
)
 
 
(673
)
 
 
(1,327
)
 
 
(841
)
Operating income
 
$
9,460
 
 
$
14,267
 
 
$
32,103
 
 
$
39,312
 
 
Customer Information

Our revenue by customer is as follows (in thousands):

 
 
Three months
 
 
Nine months
 
 
 
ended September 30,
 
 
ended September 30,
 
 
 
2013
 
 
2012
 
 
2013
 
 
2012
 
Source of Revenues
 
 
 
 
 
 
 
 
Army/Army Reserve
 
$
22,868
 
 
$
41,317
 
 
$
82,622
 
 
$
126,124
 
U.S. Navy
 
 
23,245
 
 
 
29,403
 
 
 
76,394
 
 
 
92,443
 
U.S. Air Force
 
 
3,587
 
 
 
4,562
 
 
 
9,994
 
 
 
11,852
 
Total - DoD
 
 
49,700
 
 
 
75,282
 
 
 
169,010
 
 
 
230,419
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Postal Service
 
 
36,122
 
 
 
31,192
 
 
 
104,950
 
 
 
98,816
 
Department of Treasury
 
 
9,754
 
 
 
9,181
 
 
 
28,565
 
 
 
25,324
 
Department of Interior
 
 
2,881
 
 
 
4,716
 
 
 
8,425
 
 
 
13,921
 
Department of Energy
 
 
5,237
 
 
 
5,220
 
 
 
15,343
 
 
 
15,772
 
Other government
 
 
6,985
 
 
 
7,825
 
 
 
21,451
 
 
 
23,218
 
Total – Federal civilian agencies
 
 
60,979
 
 
 
58,134
 
 
 
178,734
 
 
 
177,051
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
390
 
 
 
821
 
 
 
1,544
 
 
 
2,425
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
111,069
 
 
$
134,237
 
 
$
349,288
 
 
$
409,895